Aquaculture pollution is a major concern among the entrepreneurs, farmers and researchers. Excess discharge of phosphorus and nitrogen into the water bodies is the principal pollutant responsible for this. Plant-based feed ingredients due to its high phytic acid content enhances both nitrogen and phosphorus discharge thereby increasing the pollution level. Dietary phytase treatment is probably the best answer to address this problem. This review explains the nature and properties of phytate, its interactions with other nutrients and the application of phytase in aquafeed to reduce the pollution. This review also covers the different biotechnological aspects for lowering the phytic acid level in the common aquafeed ingredients, as an alternate approach to controlling the pollution level. Some of future research needs have also been highlighted to attract the attention of more researchers to this area.